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Analyzing the Insider Data for Advaxis, Inc. (ADXS)

Recent insider trends for Advaxis, Inc. (NASDAQ:ADXS) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of ADXS, the data has a lot to say about how the stock might perform going forward.

Institutions own 44.05% of Advaxis, Inc. (ADXS)’s shares. The total value of these holdings, in millions, is $58. Among active positions in the latest quarter, 35 holders increased their positions by a total of 1.16 million shares, 33 holders decreased the positions by a total of 4.66 million shares, and 34 holders held their positions. This works out to a net decrease in ownership of 3.5 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 5 holders initiated new positions by a total of 75071 shares and 13 holders exited their positions by a total of 2.62 million shares. This nets out to a decrease of 2.54 million shares and is another bearish sign for ADXS.

In the last three months, insiders executed a total of 15 trades. 6 of these were buys and 9 were sells. Insider ownership decreased by a total of 1.87 million shares, which suggests that ADXS’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 40 buys and 26 sells, and ownership decreased by a net of 1.28 million shares.

The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Advaxis, Inc. (NASDAQ:ADXS)’s short interest is 7.7 million shares, or 25.59% of the float. This represents a decrease of -1% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ADXS is a Strong sell, which implies that ADXS is expected to underperform the market based on prior trading patterns.

Conclusion

Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Advaxis, Inc. (NASDAQ:ADXS) is overvalued.

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